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No kidding - each of the these crypto folks go "trust us" - and then even the simplest things (1:1 US Dollar backed coin - seriously - how hard is this!) turn o

No kidding - each of the these crypto folks go "trust us" - and then even the simplest things (1:1 US Dollar backed coin - seriously - how hard is this!) turn out to be a full of crap and lies. And if you believe USDT has been 1:1 backed by us dollars for its full history - dream on. If you believed they would actually get audited when they said they would - hahah.

fleddr 5y ago
Your statement "how hard is this" shows your complete incompetence regarding the backing of anything. Nothing of value is backed in our world. If a mere 7% of bank account holders go to the bank to collect their money, the bank collapses. They don't have your money, it's not there. If all owners of gold (gold value papers) today claim their physical gold, it can't be done. There's 400% more value paper compared to the total supply above ground. If all owners of Apple stock today decide to sell their stock all at the exact same moment, they won't get out the full market cap. Because the entire thing crashed before that. But that won't happen, because the exchange will simply stop the trade. Which is the same thing crypto exchanges do when things get too heated.
- mike00632 5y ago
  The difference is that Apple doesn't claim to have a 1:1 reserve of dollars to back the value of their stock. It should matter to you that the USDT folks are lying (over something important).
  - fleddr 5y ago
    We're in agreement that lying about backing is wrong in any case, no argument there. I in particular object to the notion that things of value should be 100% backed by actual USD, in bank accounts or cash. That's not how liquidity works, yet a lot of people intuitively believe this to be so.
    - Dylan16807 5y ago
      They said it wasn't hard, not that it was necessary in all circumstances. Banks and gold deposits re-lend money because it makes them money and they can sell the storage service for cheaper. If you want something that won't be loaned back out then you can buy that service pretty easily. And stock prices changing is a very different thing. The actual supply is there, and entire markets caps can and do get sold in things like mergers.
      - fleddr 5y ago
        The supply of a stock in itself is meaningless, the only point of a stock is its USD value representation. In the case of a mass sell-off, sure, the same amount of stocks exist, but its monetary value sinks. Hence the market cap goes up in smoke. This is also why a fraction of a market cap (say a few billion) can dramatically move a stock price of a 1 trillion market cap. Same for Bitcoin. If its market price crashes, the same amount of Bitcoin exists. Yet this means nothing as only the BTCUSD pair is worth anything.
- imtringued 5y ago
  >Nothing of value is backed in our world. If a mere 7% of bank account holders go to the bank to collect their money, the bank collapses. They don't have your money, it's not there. Considering negative interest rates in the Eurozone you would be doing the banks a favor. They don't want your deposits.
  - fleddr 5y ago
    I know. I recently closed a secondary account there, had to do it in person. Their attitude was "good riddance", they truly do not want my money.
- slownews45 5y ago
  I obviously understand this better than many of the experts then. The buyer of all apple stock gets a claim to all apples future profits (and control of the corp). This happens regularly - all sellers selling when businesses are taken private. In general, this results in a premium to present value, not a discount. And even if the price went to zero, I still end up with this profit generating asset. What crypto people don't understand is that the constant LYING (!) undermines their arguments. We understand how banks work. FDIC insured to 250K, you can do an ICS or other accounts to spread your cash to get FDIC coverage for about $100M of your balance. For most folks that is plenty of cash insurance for funds if they need it. If not, buy 13 week t-bills. What you totally fail to understand, is when someone says something is backed 1:1 by a related asset, then when someone buys item A, the issuer needs to be 1 unit of the related asset. This is not complicated math. This actually happens all the time in the real world. Even the title to my vehicle even is backed 1:1 by my vehicle. Even your "successful" 1:1 backed crypto is likely anything but that, and yes - when the run starts, we will find out how bad it is.

fleddr 5y ago

Your statement "how hard is this" shows your complete incompetence regarding the backing of anything. Nothing of value is backed in our world. If a mere 7% of bank account holders go to the bank to collect their money, the bank collapses. They don't have your money, it's not there. If all owners of gold (gold value papers) today claim their physical gold, it can't be done. There's 400% more value paper compared to the total supply above ground. If all owners of Apple stock today decide to sell their stock all at the exact same moment, they won't get out the full market cap. Because the entire thing crashed before that. But that won't happen, because the exchange will simply stop the trade. Which is the same thing crypto exchanges do when things get too heated.

mike00632 5y ago
The difference is that Apple doesn't claim to have a 1:1 reserve of dollars to back the value of their stock. It should matter to you that the USDT folks are lying (over something important).
- fleddr 5y ago
  We're in agreement that lying about backing is wrong in any case, no argument there. I in particular object to the notion that things of value should be 100% backed by actual USD, in bank accounts or cash. That's not how liquidity works, yet a lot of people intuitively believe this to be so.
  - Dylan16807 5y ago
    They said it wasn't hard, not that it was necessary in all circumstances. Banks and gold deposits re-lend money because it makes them money and they can sell the storage service for cheaper. If you want something that won't be loaned back out then you can buy that service pretty easily. And stock prices changing is a very different thing. The actual supply is there, and entire markets caps can and do get sold in things like mergers.
    - fleddr 5y ago
      The supply of a stock in itself is meaningless, the only point of a stock is its USD value representation. In the case of a mass sell-off, sure, the same amount of stocks exist, but its monetary value sinks. Hence the market cap goes up in smoke. This is also why a fraction of a market cap (say a few billion) can dramatically move a stock price of a 1 trillion market cap. Same for Bitcoin. If its market price crashes, the same amount of Bitcoin exists. Yet this means nothing as only the BTCUSD pair is worth anything.
imtringued 5y ago
>Nothing of value is backed in our world. If a mere 7% of bank account holders go to the bank to collect their money, the bank collapses. They don't have your money, it's not there. Considering negative interest rates in the Eurozone you would be doing the banks a favor. They don't want your deposits.
- fleddr 5y ago
  I know. I recently closed a secondary account there, had to do it in person. Their attitude was "good riddance", they truly do not want my money.
slownews45 5y ago
I obviously understand this better than many of the experts then. The buyer of all apple stock gets a claim to all apples future profits (and control of the corp). This happens regularly - all sellers selling when businesses are taken private. In general, this results in a premium to present value, not a discount. And even if the price went to zero, I still end up with this profit generating asset. What crypto people don't understand is that the constant LYING (!) undermines their arguments. We understand how banks work. FDIC insured to 250K, you can do an ICS or other accounts to spread your cash to get FDIC coverage for about $100M of your balance. For most folks that is plenty of cash insurance for funds if they need it. If not, buy 13 week t-bills. What you totally fail to understand, is when someone says something is backed 1:1 by a related asset, then when someone buys item A, the issuer needs to be 1 unit of the related asset. This is not complicated math. This actually happens all the time in the real world. Even the title to my vehicle even is backed 1:1 by my vehicle. Even your "successful" 1:1 backed crypto is likely anything but that, and yes - when the run starts, we will find out how bad it is.